Crypto market crashes by over $500B on October 11, 2025, as Wintermute, Binance, and Trump are blamed for the downturn.
On October 11, 2025, the crypto market suffered a massive crash, erasing over $500 billion from its total market cap.
Bitcoin and Ethereum, among other major cryptocurrencies, saw sharp declines. The crypto community has since pointed fingers at several key factors behind the crash, notably Binance, Wintermute, and former U.S. President Donald Trump.
Wintermute’s Actions Raise Concerns
Wintermute, a prominent market maker, played a significant role in the crash.
The company deposited over $700 million in Bitcoin to Binance’s hot wallet just before the market downturn. This large movement of funds resulted in a noticeable price drop, triggering widespread panic among traders.
Following this deposit, Wintermute pulled liquidity from the market, which exacerbated the situation. As the liquidity dried up, the prices of assets like ATOM and SUI collapsed. These sudden drops left many traders unable to react in time, deepening the impact of the crash.
Binance’s order books also reportedly became empty, with no bids available to cushion the market. According to Hanzo from EveryCryptoTool, this situation highlighted the centralized control that Binance holds over the market. Many users also reported platform issues, including halted orders, which made the crash even more difficult to navigate.
Binance’s Role in the Crash
Binance, a leading crypto exchange, was also criticized for its internal system flaws.
According to Martin Hiesboeck from Uphold, the crash was partly caused by a vulnerability in Binance’s Unified Account margin system. The issue arose from using volatile assets like USDe, wBETH, and BNSOL as collateral for margin positions.
The crypto market crash on October 11 is suspected to be a targeted attack that exploited a flaw in Binance's Unified Account margin system.
The issue stemmed from using assets like USDE, wBETH, and BnSOL as collateral, whose liquidation prices were based on Binance's own…
— Dr Martin Hiesboeck (@MHiesboeck) October 12, 2025
The collapse of USDe’s price to $0.65 triggered a chain reaction in the market, amplifying the crash. As a result, margin calls surged, and liquidity vanished. This cascade of events wiped out billions of dollars in value across the market.
Binance attempted to address the issue, but the damage was already done. The company has since apologized and promised compensation for users affected by the collapse. However, the damage to its reputation has raised concerns about the stability of its platform moving forward.
Trump’s Post and the Market Downturn
Former President Donald Trump’s Truth Social post also contributed to the market’s downward spiral. Trump’s announcement of a 100% tariff on Chinese imports sent shockwaves through financial markets. While the post initially affected traditional markets, it quickly spilled over into the crypto space, triggering panic selling.
Bull Theory suggests that this event intensified the broader market crash, creating a structural effect as if a fund or desk had to liquidate all positions simultaneously.
Additionally, WLFI, a Trump-backed token, saw its price drop by 30% before the tariff announcement. DeFiance Capital’s Kyle speculated that insiders knew the news, selling their positions ahead of the crash.
In other words, Trump’s insiders got their bags filled on the market crash and he wants things to be better now.
Brazen crime! https://t.co/OtpHBn74Ai
— Adam Cochran (adamscochran.eth) (@adamscochran) October 12, 2025
The combined effects of Wintermute’s actions, Binance’s system flaws, and Trump’s post resulted in one of the largest market crashes in recent months. While the market has shown signs of recovery, the crypto community continues to debate the roles these factors played in the crash.
